Shares of Piramal Pharma surged over 13 percent on Thursday after the company's results showed it turned profitable in the quarter ended March 2023 (Q4FY23).
The stock surged as much as 13.2 percent to its day's high of ₹83.90.
The company's net profit for the quarter under review came in at ₹50 crore after a net loss of ₹90 crore in the previous quarter (Q3FY23). However, on a YoY basis, the net profit of the firm is down 75 percent from ₹204 crore in the year-ago period.
Meanwhile, its revenue jumped 26 percent to ₹2,146 crore in the March quarter as against ₹1,716 crore in the December quarter. However, on a YoY basis, its revenue rose just 2 percent from ₹2,131 crore in the year-ago period.
The company's EBITDA margin for Q4FY23 came in at 17 percent, up from 10 percent in the previous quarter but down from 22 percent in the corresponding period last year.
"Over the recent years, Q4 has always been the strongest quarter for the Company in terms of revenue contribution and EBITDA margin. This year as well, we have seen a healthy pickup in our Q4 revenues and EBITDA margin compared to the previous three quarters of the financial year," said Nandini Piramal, Chairperson of Piramal Pharma.
"We continue to maintain our quality track record with successful US FDA inspections – zero observations at Riverview and Digwal facilities, and EIR received for Lexington and Sellersville facilities. We believe in the potential of our businesses and our main focus over the next few months will be on capturing demand and executing them well, driving productivity through operational excellence and executing critical maintenance and growth capex," she added.
Overall in the financial year (FY23), the company posted a net loss of ₹186 crore versus a profit of ₹376 crore in FY22. Its total revenue rose 7 percent to ₹7,306 crore in FY23 as against ₹6,835 crore in FY22.
Last week, the company, in an exchange filing announced that the USFDA (US Food and Drug Administration) conducted a Good Manufacturing Practices (GMP) plus Pre-Approval Inspection of Piramal Pharma's Pithampur facility from 15th May 2023 to 19th May 2023. The inspection was completed successfully with Zero Form-483 observations and No Action Indicated (NAI) designation. The company remains committed to maintaining the highest standards of compliance, said the filing.
The stock has been on a downward trend since it made its debut on the stock exchanges in October last year after it was demerged from Piramal Enterprises in August 2022.
The stock, which was listed at ₹200, has tanked 63 percent till date from its listing price. Just in 2023 YTD, the stock has shed 35 percent, giving negative returns in 3 of the 5 months of the current calendar year.
However, it has seen some recovery since April. The stock has jumped over 16 percent in May so far after a 3.5 percent gain in April. Meanwhile, it lost 13 percent in March, 25 percent in Feb and 8.5 percent in Jan.
The stock hit its 52-week high of ₹201.80 on October 19, 2022, (its listing day) and a 52-week low of ₹63.13 on March 28, 2023.